The Chhattisgarh government has imposed a three-year blacklisting on Oriental Insurance Company Limited (OICL) following the insurer's handling of a claim related to a government helicopter crash in 2022. The state's Directorate of Aviation took the stringent measure after the claim remained unresolved for more than four years before OICL finally rejected it in August 2026.
State Government Cites Public Property Concerns
According to a government statement, the helicopter was fully insured with OICL, and all premiums had been paid. The claim, filed after the AgustaWestland helicopter crashed on May 12, 2022, during a night practice sortie at Swami Vivekananda Airport in Raipur, involved public property, making the prolonged delay a significant concern for the state.
The crash tragically killed two senior pilots, Captain Gopal Krishna Panda and DGCA examiner Captain A P Shrivastava. The Directorate of Aviation issued a show-cause notice to OICL, allowing the company to present its defense. After reviewing OICL's written response and other records, the directorate concluded that the delay and subsequent rejection warranted the blacklisting.
The government emphasized that service providers working with public institutions are expected to act promptly and accountably. Delays involving state assets can lead to financial implications, necessitating appropriate action under existing regulations. Despite the blacklisting, the Chhattisgarh government confirmed it would pursue administrative and legal remedies to safeguard its interests regarding the insurance claim.
Oriental Insurance Disputes Decision
OICL expressed strong disappointment with the decision, calling it unjust. The insurer stated its actions were based on the policy terms and available documentation, including a detailed report from the Aircraft Accident Investigation Bureau (AAIB) under the Ministry of Civil Aviation, an independent surveyor's report, and recommendations advising against the claim's admissibility.
The company attributed the significant delay to the late submission of the AAIB report. OICL also claimed that the Directorate of Aviation's slow response to letters from the surveyor, which sought comments on observations in the report, contributed to the protracted process. As a Government of India undertaking, OICL argued that the blacklisting is unjustified and will ultimately harm the Chhattisgarh government by limiting competition in future government tenders.
OICL highlighted its long-standing relationship with the Chhattisgarh government, pointing out that it had previously settled Personal Accident claims worth ₹1 crore each for the two crew members who died in the same 2022 crash.